Apple(US:AAPL) Hua Er Jie Jian Wen·2025-09-03 02:12Core Insights - Morgan Stanley's report reveals key highlights and pricing expectations for the upcoming iPhone 17 series, including a new model, the iPhone 17 Air, which is anticipated to replace the less popular Plus version [1][2]. Pricing Summary - The starting prices for the iPhone 17 series are expected to remain stable for most models, with the Pro model seeing a price increase due to a doubling of base storage from 128GB to 256GB [3][4][7]. - iPhone 17 starting prices are projected as follows: - iPhone 17: $799 (unchanged) - iPhone 17 Air: $899-$949 (new model) - iPhone 17 Pro: $1,099 (up from $999) - iPhone 17 Pro Max: $1,199 (unchanged) [4][7]. iPhone 17 Air Features - The iPhone 17 Air is expected to be the thinnest iPhone to date at 5.5mm, weighing approximately 145 grams, and will feature a 6.6-inch ProMotion display with 120Hz refresh rate [2][8]. - It may compromise on camera specifications, potentially featuring a single 48MP rear camera and a smaller battery capacity of 2,800 mAh compared to other models [2][8]. - Initial production estimates for the iPhone 17 Air are between 10 million to 15 million units, indicating a cautious approach from Apple [2]. Market Considerations - The report emphasizes the critical role of the Chinese market in driving iPhone sales, highlighting the importance of pricing strategies in relation to smartphone subsidies [5]. - The iPhone 17 Air's estimated starting price of $899 exceeds the subsidy threshold of 6,000 RMB (approximately $840), which could impact its demand in China [5]. Product Expectations - The iPhone 17 series is expected to feature advancements such as: - Pro models with upgraded camera systems, including a 24MP front camera and three 48MP rear cameras [8][10]. - The entire product line may adopt ProMotion technology, previously limited to Pro models [8]. - The Pro models will be powered by the new A19 chip, with the Pro version utilizing an A19 Pro variant [10]. Apple Watch Updates - The Apple Watch 11 is anticipated to have minimal upgrades, while the Apple Watch Ultra 3 is expected to include satellite connectivity as a significant enhancement [10].